Struggling with your home loan? Help is free, and translators are available.

If you’re having trouble making repayments, contact your lender early – even before you miss a payment. The sooner you ask, the more options you’ll have.

• Work through your household budget first, so you know your income, expenses and any shortfall.
• Your lender may ask for a “statement of financial position”. AFCA has a free template on its website.
• You can ask for hardship assistance in writing or by phone. If you call, note the date, time and who you spoke to.
• Your lender generally has 21 days to respond to a hardship request.

• If you fall behind on your mortgage repayments and have not reached an agreement
  with your lender, the lender may issue a letter called a default notice.
• A default notice is usually the first formal step in the legal enforcement process.
• The notice will generally:
  • Require you to pay the overdue amount (arrears); and
  • Give you at least 30 days to pay the arrears or contact the lender to negotiate
    an alternative arrangement.
• If the default notice expires without the arrears being resolved, the lender may start court proceedings.
• Court documents are usually served in person, but may also be served by mail or
  another agreed method.
• Court action can ultimately result in an order allowing the lender to take possession of
  your home.
• If you receive court documents, seek legal advice as soon as possible.
• You may have only 10 days to respond before the lender can take further legal action.
• Legal assistance may be available from:
  • Mortgage Stress Victoria (MSV);
  • Your local community legal centre; or
  • A private lawyer.
• The Law Institute of Victoria can help you find a private lawyer in your area.

• Internal Dispute Resolution (IDR): ask your lender’s IDR team or Customer Advocate to review the decision. They have 21 days to respond.
• AFCA: if you’re still not satisfied, lodge a free complaint with the Australian Financial Complaints Authority online or on 1800 931 678. If your lender has started court action, an AFCA complaint lodged before you file a defence can pause the court proceedings.

A default notice is usually the first step toward legal action and gives you at least 30 days to respond. If you’ve been served with court documents, seek legal advice as soon as possible – MSV, Victoria Legal Aid, or a community legal centre can help.